European shares closed higher on Tuesday (1st), recouping some of January’s big losses, boosted by Swiss bank UBS after strong fourth-quarter results.
The pan-European STOXX 600 index rose 1.28% to 474.86 points after January became the worst performing month since October 2020 as concerns over rising interest rates, inflationary pressures and tensions geopolitics brought the index down by 4%.
Financial stocks rose 2.1%, boosted by UBS after the lender posted its best annual profit since the global financial crisis, which encouraged it to increase share buybacks and set more ambitious profit targets.
Switzerland’s biggest bank gained 8.0% and hit a four-year record.
Mining stocks were the best performers of the day, rising 3.5%, following gains in copper prices.
Expectations of more stimulus in China, a major importer of the commodity, boosted metal prices in recent weeks.
“Without a clear catalyst behind the improvement in market sentiment and no clear change in the fundamental scenario, we believe that (the recovery) could be due to portfolio rebalancing…after a very turbulent month,” said Charalambos Pissouros, head of research at JFD Group. In LONDON, the Financial Times index advanced 0.96% to 7,535.78 points.
- In Frankfurt, the DAX index rose 0.96% to 15,619.39 points;
- In Paris, the CAC-40 index gained 1.43% to 7,099.49 points;
- In Milan, the Ftse/Mib index appreciated by 1.53%, at 27,224.89 points;
- In Madrid, the Ibex-35 index registered an increase of 1.32%, to 8,726.70 points;
- In Lisbon, the PSI20 index rose by 1.10%, to 5,625.56 points.
Source: CNN Brasil
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